Purchase Process

There are a lot of similarities in the sales and purchase processes of SAP Business One. In fact, the streamlined process (where in you directly add an A/R Invoice instead of starting from a sales order) is also available in the purchasing module. The standard purchase process stars with:  Purchase Order à GRPO à A/P Invoice à Outgoing Payments.

 

·       Purchase Order: - The purchase order is a document used to request items or services from a vendor at an agreed upon price. There are no financial or inventory postings that take place when you add this document to the system.

·       GRPO: - GRPO (Goods Receipt Purchase Order) is added when you receive the good ordered form your vendors. The GRPO makes sure the goods are added into the warehouse, updates the quantities, and creates an accounting journal entry if you manage your Business One system by perpetual inventory.

·       A/P Invoice: - The A/P invoice is a request for payment from the organization’s side. By adding this document your legally obligated to pay the said amount to you vendor. It also records the cost in the profit and loss statement.

·       Outgoing Statement: - This document is used to create a record each time your company issues a payment to a customer, vendor, or on account. Once the outgoing payment is added, an appropriate journal entry is created. The outgoing payment document can be created for the following payment means:

o   Cash

o   check

o   credit card

o   bank transfer.